From the KWU Course Market Center Financials (c) 2019
The Market Center should charge an office (desk) fee for any space that is reserved for use by a specific associate, team, or group. This space may be an actual office, cubicle, or a simple work station.
1. Calculate Total Occupancy Costs
Add all costs you must pay in order to occupy your office space for one year. This will include the actual rent, of course, and may include other costs such as utilities, janitorial, common area maintenance (CAM) fees, taxes, etc. The sum of these costs equals the Total Occupancy Costs.|
2. Determine Monthly Average Occupancy Costs
Divide Total Occupancy Costs by 12 to determine the Monthly Average Occupancy Costs.
3. Determine Total Usable Square Footage
The Total Usable Square Footage is the sum of the Team Leader and Market Center Administrator office, associate offices, personal workspaces, "bullpen" workspaces, training room, consultation rooms, break room, lobby, research room, and any other spaces that are actually usable by the Market Center associates and staff.
4. Determine Cost per Square Foot
Divide the Monthly Average Occupancy Costs by the Total Usable Square Footage to determine Cost Per Square Foot.
5. Calculate Individual Space Rent
Determine the square footage of the specific space and multiply that number by the Cost Per Square Foot. This is the amount the associate should pay the Market Center in desk fees every month.
Rent Calculation Example
| 1 | Total Occupancy Cost | = | $240,000 |
| 2 | Monthly Average Occupancy Costs ($240,000 / 12) | = | $20,000 |
| 3 | Total Usable Square Footage | = | 5,000 |
| 4 | Cost Per Square Foot ($20,000 / 5000) | = | $4 |
| 5 | Individual Space Rent (10' x 10' office = 100 sq. ft. x $4) | = | $400 |
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